Miscellaneous Flashcards
How was the L&E claim ‘factored into’ the final account sum? (BM)
EoT approved: 5-week extension.
Prolongation basis of claim.
Time related preliminary item rates used.
Weekly cost derived: £1.8k.
Total: Circa £9.5k.
Apply Hudson formula OH% of 5% to the total of the additional prelim costs.
No other request for claims were made however they could have applied for others as well ie. Cost of claim; loss of profit, thickening preliminaries, etc.
Although stating to the contractor and the client that actual costs can be used to determine costs, they both agreed to accept this figure.
Why did you think they could be omitted/changed - what did you base this on? (BM)
Reported costs and proposed a meeting.
Agreed to align works with budget.
Marked pricing document with urgency levels.
Created cost matrix with alternatives and potential costs.
What items did you advise you felt could be omitted or alternative solutions used? (BM)
Back of house area redecorations rather than replacement; kitchenette areas was upgraded not replaced; side windows were renovated rather than replaced; UFH cleaned and flushed rather than replaced (Survey Report £25k full replace); omissions also made; replacement of all external paving;
What was this ‘new information’ in the addendum concerning M&E? (BM)
New M&E surveys conducted.
Focus on AHU.
Refurbishment increased costs by £50k (£65K refurbish AHU instead of the earlier £18k replacement of Hunidifier and controls)
Earlier plan: £18k for humidifier replacement.
Company Business Plan?
5 years
Invest in employees and working environments; promote happy and productive working environments; invest in technology; improve diversity; provide best service to clients; diversify clients and sectors.
SWOT - S:Offer many services ;W:Narrow range of clients ;O-New Technology; Sustainability;T- Economy/Global Situation
Increase employees by a third (600-900)
Increase turnover and profit. (£93m-£130m)
Profit (£17m-£30m)
What are the benefits of partnering?
The overall construction and design programme is shortened because there is a prior understanding of
the Client and their requirements from previous projects.
o The potential for conflict is reduced.
o Communication is improved.
o Pooling of resources and ideas should result in innovative solutions.
o Improved client satisfaction is gained.
o RECOGNITION OF PROTECTION OF PROFIT MARGIN FOR CONTRACTORS AND SUPPLIERS.
o A team environment is formed that encourages innovation and technical development.
o Improved buildability with early involvement of contractors.
o Better predictability of time and cost.
What are the key differences between NEC and JCT?
The NEC is concise and written in plain English.
* There are a number of optional clauses reducing the need to amend contracts compared to the JCT.
* The Project Manager is presented with options to deal with problems as soon as they become apparent.
* Provision of early warning procedure and risk register encourage a proactive approach to the
management of the project whereas JCT is more reactive.
* Compensation events deal with issues affecting both time and money under NEC whereas under JCT,
variations deals with money and loss and expenses deal with time.
* Changes are based on quotations prior to commitment whenever possible under a rolling final account
under NEC whereas under JCT agreement of costs can be left to the very end of the project.
* Cost of compensation events are calculated using schedules of actual costs rather than bill rates under
JCT.
* There is no QS or Employers Agent mentioned in NEC only a Project Manager who takes on both
roles.
* The Programme is a contract document under NEC with 25% of money being deducted on interim
payments if the contractor does not submit an accepted programme at contract stage.
* The NEC has no provision for nomination of sub-contractors but preferred sub-contractors can be
listed within the Works Information.
* The Defects correction period has different periods specified depending on the impact of the defect
under NEC where the contractor must “make good” in these time periods. This approach is much
better at dealing with defects when compared to JCT.
* Short periods of reply are adopted under NEC which incentivise the parties to respond to each other
however is reality the NEC maybe considered as very administration heavy.
* Retention and delay damages are optional clauses under NEC.
Client Drivers - value for money?
Most benefits derived from cost.
What were these minor roof repair works? (BM)
The values?
Clerestory window repairs
Additional lead repairs and replacement
Installation of additional hoppers
Replacement of weatherboarding
Upgrading rainwater goods with 5ln guttering and downpipes
£30k total
What sort of strategies for managing these risk were proposed? (HCW)
Engagement initiatives: team meetings, events, drop-ins, associations
Resident profiling: assess needs, preferences, vulnerabilities
Communication plans: tailored for each project stage
Customer care: training, conduct standards
Complaints management: surveys, prompt resolution, improvement strategies
Dedicated contact point: for resident communication and issue tracking
What was discussed at the ‘pre-start meeting’?
Introduction and attendance
Health and safety briefing
Review of project scope, schedule, and milestones
Site rules and access arrangements
Construction methods and sequencing
Coordination of subcontractors and suppliers
Quality control and inspection procedures
Communication protocols and reporting mechanisms
Environmental considerations and waste management
Any specific project risks or issues to address before starting work.
Why might there be ‘loss and expense claims from the original contractor’?
Disruption and Delay: The omission may disrupt the contractor’s planned sequence of work, leading to delays in completing the remaining scope of works.
Resource Reallocation: The contractor may have allocated resources and manpower based on the original contract scope, and the omission requires reallocating resources or remobilizing, incurring additional costs.
Reduced Efficiency: Working on a reduced scope of works may decrease productivity and efficiency, leading to increased labor and overhead costs.
Extended Duration: The contract duration may be extended due to the omission, resulting in prolonged site overheads and additional supervision costs.
Contractual Entitlement: The JCT Intermediate Contract provides for the contractor to claim for loss and expense resulting from variations, including omissions, subject to meeting notification and substantiation requirements.
Overall, the contractor may argue that the omission of a significant portion of the works has impacted their ability to perform efficiently and has resulted in additional costs, entitling them to claim for loss and expense under the contract.
What ‘times of the year’ does it sit?
The frequency of procurement cabinet meetings can vary depending on factors such as the volume of procurement activities, the urgency of procurement needs, and the administrative schedule of the authority. Typically, these meetings might occur on a regular basis, such as monthly or quarterly, to ensure effective oversight and decision-making in the procurement process
[There is also usually a requirement to book a slot to be seen by the committee in advance and these bookings may already be taken]
Why was ‘cost’ the main driver, then time, and then quality, exactly?
Firstly, as a publicly funded project, cost efficiency is essential to ensure optimal use of taxpayers’ money and to meet budget constraints set by the council.
Secondly, programme duration is critical to minimize disruptions to residents’ lives and to ensure that essential services are maintained throughout the refurbishment process.
Finally, while quality is important for ensuring the longevity and functionality of the facility, compromises in quality may be acceptable if they do not compromise safety or essential services, allowing the project to be completed within budget and on schedule.
Prioritizing these factors allows the council to achieve its objectives of delivering necessary upgrades to the facility while efficiently managing resources and minimizing inconvenience to residents.
What is a ‘control methodology’?
Systematic approach to manage changes to the contract scope, ensuring adherence to budgetary constraints and timely completion of the project
What does ‘effectively manage and plan the developing scope’ mean?
Systematically analyzing, organizing, and adjusting project requirements as they evolve, ensuring alignment with project objectives, resources, and constraints while minimizing disruptions to progress and budget.
Why was it made? (EoT; BM)
Bullet-pointed reasons for delays.
10 causes submitted with explanations and durations.
Primarily late confirmation on CDP items - ie blinds spec, CAT ladder locations, south elevation and internal changes following RIW waterproofing solution
What was the rate of ‘Liquidated Damages’? How did the Client calculate this figure?
LADs £1,663.39/week
Client used a standard formula designed for their projects based on contract sum and associated Finance and Professional Costs.
Examples of your implementing rules of conduct eg acting with integrity?
Rule 1: Final Accounting - including any ‘missed’ costs.
Rule 2: Only providing advice where I am competent - eg recommending possible work options but not specifying any works.
Rule 3: Understanding what is required of me and providing my full attention together with QA procedures eg Recommendations for Payment.
Rule 4: Respecting all people I encounter within my role paying proper consideration and unbiased actions eg undertaking negotiations.
Rule 5: Identifying and calling out any improper actions eg unsafe practices on site, asking to stop, and reporting to person in charge.
What is the definition of Bribery?
Inducement for an action which is illegal, unethical, or a breach of trust.
Something in return for an advantage.
How did you present advice in your case study? (really high level)
-I summarized the problem and key issues
-Proposed options and the reasons for them
-Ran through the positives and negatives
-Offered the best solution based on which best addressed the client’s goals and priorities.
What are ‘Reckoning Days’ and what do they allow for?
The days identified in the contract for matters such as issuing notices, issuing certificates, etc
Allow for bank holidays.
What is the ICMS? (really high level)
international Cost Management Standards
International measure on lifecycle costing
